INDIAN INSTITUTE OF TECHNOLOGY, KANPUR

STORES & PURCHASE MANUAL

(As approved by the Board of Governors in its 2008/5th meeting held on 28.11. 2008.
These guidelines supersede the earlier guidelines approved by the Board of Governors
in its 1998/ 3rd meeting held on 26.08.1998).

1.0 Introduction

This manual outlines the procedures to be adopted for the purchase of various
kinds of equipment and stores by Departments/Inter-disciplinary
Programmes/Centres/Central Facilities/Units/Sections, both from Institute’s
main account as well as from the projects funds, but excludes the purchases
to be made by the Central Library and the Institute Works Department.

2.0 Abbreviations and Definitions

2.1 Abbreviations

AS-Account Section
BOG-Board of Governors
CA- Competent Authority
CS- Consumable Stores
CFA- Competent Financial Authority
DD-Deputy Director
DORD-Dean of Research and Development
FC – Finance Committee
JEE- Joint Entrance Examination
GFR- General Financial Rules
GATE-Graduate Aptitude Test of Engineering
HOD-Head of Department
IA - Internal Audit
IR – Inspection Report
LTAS-Limited Time Asset Stores
NCS-Non-Consumable Stores
PI-Project Investigator
PPF – Purchase Proposal Form
R&D-Research and Development Office
RC: Rate Contract
SPS- Stores and Purchase Section
SPO- Stores & Purchase Office

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2.2 Definitions

Approved format: At different places in this document reference is made to

approved formats. All such formats shall be approved by the Director from
time to time. The approved formats, as at present, are enclosed in annexure-I,
II and III.

Department: In what follows, Department shall imply Department/ Inter-

Disciplinary Program/Center/Central Facility/Section or any entity in the
Institute which has a separately allocated budget.

Project: In what follows, Project shall mean and include any sponsored
research, consultancy project or any other activity which has a valid project
number given by the R&D office of the Institute.

Project Investigator: A regular employee of the Institute whose name is

recorded as a project Investigator in the records pertaining to the project in the
R&D office.

Purchaser: The individual who signs as purchaser in the purchase proposal

form shall be referred to as a purchaser.

Seller: A seller refers to the company/vendor/dealer/agent/individual party

from whom the institute may potentially buy goods or services.

Temporary Contingent Advance: It is an advance which can be taken to

meet contingent expenses on NCS/LTAS/CS/Miscellaneous items. This should
normally be taken from the appropriate budget head.

Rate Contract: A Rate Contract (commonly known as RC) is an agreement

between the purchaser and the suppliers for supply of specific goods and allied
services, if any, at specified price and terms and conditions during the period
covered by the Rate Contract.

3.0 Classification of Stores

All stores to be procured shall be classified into three categories viz, Non-
Consumable Stores (NCS), Limited Time Asset Stores (LTAS) and Consumable
Stores (CS).

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3.1 Non-Consumable Stores (NCS): Stores satisfying any one of the following
conditions shall be classified as non-consumable stores :

(a) stores which are intended to be used over prolonged periods before
becoming unusable, or obsolete,
(b) stores having a significant disposal value,
(c) stores which are sub-systems, or parts of an equipment, which can be
potentially repaired and reused, and
(d) stores which are either fabricated, or assembled equipment, and which if
bought as a single item would have been classified Non-Consumable
Stores.

All non-consumable stores have to be entered into the Asset Register of the
Institute and the NCS Stock register of the appropriate Department.

Examples :(examples are indicative and not exhaustive) plant machinery,

equipment, fabricated equipment, instruments, assembled instruments,
motors, gas cylinder, workshop machines, furniture and books etc.

3.2 Limited Time Asset Stores (LTAS): Stores satisfying any one of the
following conditions shall be classified as LTAS.

(a) stores which have significant value when purchased but rapidly lose
their value/relevance with the lapse of time and have very little or
negligible disposal value, and/or
(b) stores which can be upgraded either by replacing components/parts or
which can be rendered obsolete by the release of new versions or
editions.

All LTAS shall be entered into the Limited Time Asset Stores Register of the
Institute and in a separate Limited Time Asset Stock Register in the
appropriate Department.

Examples: (examples are indicative and not exhaustive) Computers, disk and
other peripherals drives which are computer accessories, software, printers,
monitors, UPS, telephones, mobile etc.

3.3 Consumable Store (CS): Stores satisfying any one of the following
conditions shall be classified as CS:
(a) stores which exhaust with lapse of time,
(b) stores which are rendered unusable due to normal wear and tear,
(c) stores which do not have significant disposal value, and
(d) spares of equipment which do not fall either in the NCS or LTAS
category.

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The CS shall be entered in the CS Stock register of the appropriate
department. For projects, the CS shall be entered in the CS Stock register for
the project.

Examples: (examples are indicative and not exhaustive) chemicals, medicines,

stationery items, printer ribbons and cartridges, pen drive, floppies, CD ROMs,
magnetic tapes, chips and electronic components like resistors, capacitors,
connectors etc, electrical components like wire switches, plugs, bulbs, cells,
tool-bits and hand tools etc.

If the spares are purchased for fabricating or manufacturing any equipment,

such spares are to be treated as Non Consumable items. However, if a spare is
purchased to replacing any spare of an equipment, such spare be treated as
CS, provided such spare do not have any replacement value.

In case of a dispute regarding the classification of an item, the decision of

Director shall be final.

4.0 Financial and Sanctioning Powers:

New financial powers as per DFPR-2014 in place of financial powers mentioned
below

The following table gives the financial limits up to which the concerned person
has authority to approve purchases within the allocated budget of the
department/project. Such a person shall be referred to as the Competent
Financial Authority (CFA). It is the responsibility of the CFA to ensure that
sufficient funds are available for the purchase.

Sr. Competent Non- Limited Time Consumable Temporary

No Financial Consumable Asset Store Store (CS) Contingent
Authority (NCS) (LTAS) Advance for
equipment
1 Registrar/HOD/ 2,00,000/- 1,00,000/- 50,000/- 5,000/-
Project
Investigators (for
project purchase
only)
2 Deputy Director/ 10,00,000/- 5,00,000/- 2,00,000/- 1,00,000/-
DORD(for project
purchase only)
3 Director All cases All cases All cases All cases

Notes:
1. All purchases of furniture’s should be done through Stores and Purchase
Section after duly approved by the Dy. Director.
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2. The above limits apply to indigenous purchase as well as import. For the
purposes of imports the Indian Rupee equivalent of the foreign currency on the
date of sanction should be considered.
3. All temporary contingent advances shall be adjusted as per the guidelines
approved by the BOG.
4. The financial and sanctioning powers as given above are approved by BOG
and can be revised by the BOG from time to time.
5. Chairman JEE and Chairman GATE shall be treated as equivalent to
HOD.
6. For the purposes of this manual, Acting HOD and Acting DORD shall
exercise the same financial powers as the incumbent unless decided otherwise
by the Director.

5.0 Category of Firms, Registration & Blacklisting:

There shall be the following categories of firms for inviting quotations for
purchase of materials /services/equipments/instruments etc.

5.1. Local Registered Firms:

Local (within municipal area of Kanpur) general suppliers, authorized

agents/distributors of the manufactures/service providers and firms
undertaking job works can be registered with the Institute as per the
procedure mentioned in annexure –IV.

For obtaining such registration the firms shall be required to be registered with
Sales Tax Office and should have Service Tax Registration, Tax Prayer
Identification No (TIN) and PAN allotted to them. The firm must maintain an
office/shop/show room registered in its own name, in the market/industrial
area or another suitable place and should have a bank account wherein the
payments may be sent directly in the bank.

Credentials including manufacturing capacity, quality control facilities, past

performance, after-sales service, financial background etc. of the firm shall be
carefully verified by the Institute.

The registered firms shall be liable to be removed from the list of approved
firms if they fail to abide by the terms and conditions of the registration or fail
to supply the goods on time or supply sub-standard items/goods or make any
false declaration to the Institute or for any other grounds which, in the opinion
of the Institute, is considered to be against the public interest.

The firm will be registered for a fixed period, normally upto 3 years, depending
on the nature of the supplies to be made by them. At the end of

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the period, the registered firms willing to continue with registration should be
required to apply afresh for renewal of registration as per procedure given in
annexure-V. New firm may also be considered for registration at any time,
provided they fulfill all the required conditions.

All the firms should be registered with the SPS for supplies of specific items,
including direct supply.

5.2 Outside Firms:

The firms hailing from outside (beyond the municipal limits of Kanpur) must
be manufacturing or authorized dealers/agents/stockiest/suppliers/service
provider of manufacturer. Purchase can be made only from those reputed
sellers who have sales tax registration/CST registration, UPTT registration,
Shop Act registration, PAN (Income Tax), Tax Prayer Identification No (TIN) and
relevant excise registration, wherever applicable. Such firms shall be required
to provide an valid authority in this regard.

5.3 Black listing

Black-listing of firm can be done on the recommendations of the HOD/PI and
with approval of Competent Authority. The Officer–In-charge of Stores &
Purchase Section shall process all such cases reported by the
Department/Centers. A committee specially constituted by the Director/Dy
Director shall examine the case and shall submit its recommendations to the
competent authority for final action. The information on such firms shall be
promptly and widely disseminated by Officer–Incharge of Stores & Purchase
Section to all concerned.

6.0 General Procedures and Rules for Purchases:

The following procedures shall apply to all purchases except where stated
otherwise.

6.1 Purchase of Goods without Quotation

6.1.1 Purchase of goods upto a value of Rs.50,000/- (Rs Fifty Thousand only)
on each occasion may be made without inviting quotations/bids by the
competent authority on the basis of a certificate recorded by him in the
following format:

“I am personally satisfied that these goods purchased are of the

requisite quality and specification and have been purchased from a
reliable supplier at a reasonable price.”
Signature

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All Purchases as in the serial number 6.1.1 can be made directly by the
purchaser from the market/authorized dealers (after ensuring that the price is
reasonable) or through SPS. Such purchases shall be done in the following
three ways:
a) Directly by the purchaser through an advance drawn for the
purpose. This advance shall be subsequently adjusted, for which cash
memo/bill/receipt and proof of entry in the appropriate Stock and Asset
(if relevant) Register must be submitted. Approved formats shall be used
for drawing the advance and for adjustment. For project purchases the
form for advance shall be sent to R&D office and for Non-project
purchases it shall be sent to the AS. Intimation must be sent to
SPS/R&D in case of NCS,CS and LTAS purchases for entering the item
in Asset register, otherwise bills for payment will not be passed by
AS/R&D office and shall be monitored by Internal Audit.

b) By the purchaser making the purchase directly from the seller and
the payment being made by the R&D Account unit for project purchases
and Accounts Section for non-project purchases. Payment will be made
against proper invoice/bill/tax invoice proof of challan/transfer invoice
of the item by the purchaser and entry in the appropriate stock register
and Asset Register (wherever relevant). Intimation must be sent to
SPS/R&D in case of NCS and LTAS purchases entering the item in Asset
register, otherwise bills for payment will not be passed by AS/R&D office
and shall be monitored by Internal Audit.

c) Through SPS, for which the quotation duly signed together with
the PPF approved by the CFA shall be sent to SPS for placing the order
and further processing.

6.1.2 Purchase of goods by Purchase Committee

Purchase of goods costing more than Rs.50,000/- (Rs. Fifty Thousand only)
and upto Rs.1,50,000/- (Rs One Lakh Fifty Thousand only) on each occasion
may be made on the recommendations of a duly constituted Local Purchase
Committee consisting of at least three members of an appropriate level as
decided by the HOD and approved by the competent authority. The committee
will survey the market to ascertain the reasonableness of rate, quality and
specifications and identify the appropriate supplier. Before recommending
placement of the purchase order the members of the committee will jointly
record a certificate as under:
“Certified that we members of the purchase committee are jointly
and individually satisfied that the goods recommended for purchase are
of the requisite specification and quality, priced at the prevailing market
rate and the supplier recommended is reliable and competent to supply
the goods in question.”

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 Signature
6.2. Purchase of Goods with Quotation:

6.2.1 Purchases up to a value of Rs.1,50,000/- with a minimum three

quotations, can be made by a committee approved by the HOD. Quotations
should be opened and signed by at least two persons and the HOD/PI.

If the value of the enquired items is be more than Rs.50,000/-, a copy of all
enquiry letters shall be displayed on the Institute website and notice board of
the concerned department and quotations received from firms on the basis of
this notice will be considered if these are from any of the categories of the
registered firms. The notice inviting tenders/quotations along with
specifications should also be released simultaneously on the website of the
institute and the website address should be given in the tender notice.

Enquiry should be floated by registered post/courier/fax/e-mail/speed post

but quotations must be received in a sealed cover.

6.2.2 For purchases more than Rs.1,50,000/-, purchase will be done through
a purchase committee of at least three members and approved by the
appropriate CFA (DD/DORD). Departments may also get a committee approved
by the CFA for a maximum period of one year to make such purchases.

A copy of all enquiry letters will be displayed on the Institute website and
notice board of the concerned department and quotations received from firms
on the basis of this notice will be considered if these are from any of the
categories of the registered firms. The notice inviting tenders/quotations along
with specifications should also be released simultaneously on the website of
the institute and the website address should be given in the tender notice.

6.2.3 Irrespective of the amount, for purchases which are directly initiated by
the Stores & Purchase Section, the Director/Dy.Director shall constitute a
committee for a period of one year comprising of at least three members
including one from the SPO. This procedure is to be followed when bulk
purchase of stores is involved (e.g. medicines, stationery items, chemicals &
liveries etc) or items which are required by multiple departments.

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6.3 Purchase of goods on single quotation basis (Proprietary Article)

Procurement of goods on single quotation basis may be followed in the

following circumstances.

 It is in the knowledge of the user department that only a particular

firm is the manufacturer of the required goods or proprietary item. 

 In case of emergency, the required goods are necessarily to be
purchased from a particular source and reason for such decisions is
to be recorded and prior approval of the competent authority be
obtained before effecting the purchase. 

 For standardization of machinery or spare parts to be compatible
with the existing sets of equipment, the required item is to be
purchased only from a selected firm. 

 The indenter should provide a certificate that the price quoted by the
firm is reasonable and the same is a proprietary item. 

Purchase of items of a proprietary nature (i.e. item which do not have

substitutes, or are spare parts of already existing equipment for which
substitute replacements are not available) can be done on the basis of a single
quotation irrespective of the value of the item. In such cases the purchaser
must furnish a proprietary certificate (as placed at Annexure-VI)
countersigned by Head of the concerned, or associated department. If the total
value of the item is more than Rs1,00,000/- a proprietary certificate must be
obtained from the supplier stating that they are the only source of supply
/manufacture.

6.4 Repeat Orders

Repeat orders are processed subject to the following conditions:-

 The repeat order can be made with no change in the rates,

 specifications as well as terms & conditions of supply. 
 the repeat order shall be placed within 120 days time from the date of
 the quotations. 
 after ensuring that there is no significant reduction (more than 10%)
 in the cost of the item(s). 
 no repeat order will be placed if buy-back is involved in the purchase. 

 Any amended order shall not be considered for repeat order. 

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6.5 Purchase of Rate Contract Goods

A Rate Contract (commonly known as RC) is an agreement between the

purchaser and the suppliers for supply of specific goods and allied services, if
any, at specified price and terms and conditions during the period covered by
the Rate Contract.

Based on requirements identified by the SPS the Institute may enter into rate
contract arrangements for specified terms from one or more sellers for a
specified length of time. The details of such arrangements shall be negotiated
by a committee constituted by the Director/Deputy Director. The
recommendations of the committee shall be approved by the Director before
they are formally adopted. The period for which the Rate contract is valid will
be counted from the day the rate contract is formally adopted. The process for
entering into rate contract arrangements shall be initiated by SPO.

In case of items for which Directorate General of Supplies & Disposals

(DGS&D) Rate Contract exist, the SPO will procure these items by placing
direct orders on the firms.

Any item may be purchased on single quotation basis at DGS&D approved rate
from authorized and established firms authorized by the manufacturer. But
the firm has to furnish latest DGS&D rate contract copy. Rate contract will not
be a binding as long as other purchase process is followed.

6.6 E-Procurement

Purchase of goods through electronic mode of interface with tenderers and IT

enabled management of the entire procurement process (notice inviting
tenders, supply of tender documents, receipt of bids, evaluation of bids, award
of contract, and execution of contract through systematic enforcement of its
various clauses and tracking claims ,counter-claims and payments) is called e-
procurement. This is gradually gaining popularity. In order to cut down the
transaction costs and improve efficiency and transparency, the Government
aims to make it mandatory for all the organizations.

As such, all the departments/sections/centers are advised to proactively

engage themselves in articulating user needs in the development of IT system
for e-procurement. The system should be secure, capable of maintaining
complete confidentiality at appropriate stages of the bidding process, so that
the tenderers feel confidence in electronically transmitting their queries and
bids. Untill a full fledged system for e-procurement is developed by the

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Institute, the departments/sections/centers may receive quotations through
hard copies as well as by e-mail, provided the quotations received via e-mail
shall be included only when a hard copy duly completed in all respects is
received from the concerned tenderer before the date of opening of the bid. It is
in this context that all departments/sections/centers are advised to display all
enquiry letters on the Institute website and notice board of the concerned
departments/sections/centers so that the registered firms are able to submit
their quotations to the concerned department within the specified period. After
finalization of the e-procurement system Institute will implement the same.

6.7 Purchase under buy back scheme

If any item is purchased under buy back scheme for old one, quotations are to
be invited clearly mentioning the specification of old and new item asking the
buy back offer from the vendor. After finalizing the deal a condemnation report
is to filled up on GFR-17 form for old item, signed by all members of
condemnation/write-off committee, approved by Director and finally to be sent
along with purchase indent. It is to be mentioned on GFR-17 in the column of
mode of disposal that item is being given to the firm under buy back scheme.

6.8 Two bid system

For purchasing capital equipment, high value plant, machinery etc. of complex
and technical nature, tender enquiry document, complete in all respects, may
be issued as usual. However, the tenderers should be asked to bifurcate their
quotation in two parts. The first part is to contain the relevant technical
specifications and allied commercial details as required in terms of the tender
enquiry documents and the second part should contain only the price
quotation. The first part is commonly known as a ‘Technical Bid’ and the
second part ‘Financial Bid’.

The technical bid and the financial bid should be sealed by the tenderer in
separate covers. The technical bids are to be opened in the first instance, at
the prescribed time and date and the same will be scrutinized and evaluated
by the competent committee / authority with reference to the parameters
prescribed in the tender documents and the offer received from the tenderers.
Thereafter, in the second stage, the financial bids of only the technically
acceptable offers (as decided in the first stage above) are to be opened for
further scrutiny, evaluations, ranking and placement of contract.

6.9 Late Tender

In the case of advertised tender enquiry, or limited tender enquiry, late tenders (i.e. tenders
received after the specified date and time for `receipt of tenders) should not be considered.

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6.10 Purchase procedure for the items not covered under 6.1.1 above

Quotation shall be invited by the Store & Purchase Section as per the
prescribed procedure, however as a special case purchaser can call quotations
but the rules should be followed and proper justifications be given for inviting
quotations. Indenter will send approved indent with detailed specifications for
inviting quotations to Store & Purchase Section for both the purchases
(Institute and Projects). Store Purchase Section after inviting quotations and
making comparative reports will send to concerned indenters of
Institute/Projects purchases for making recommendations for placing order.
The purchase shall be processed based on at least three quotations from
reputed sellers unless an exemption to this effect has been explicitly obtained
from the DD/DORD (for project). It is not correct that enquiry be sent to only
three firms and get three quotations only. Enquiry should be floated to as
many vendors as possible (almost all available vendors) to have competitive
rates. Quotation can be called and received by registered post/ speed
post/courier service in sealed cover. Typically, the call for quotation should
mention as follows:
(i) the specification of the item(s) and end use of the required goods,
(ii) quantity to be purchased,
(iii) the date and time by which the quotation should be received,
(iv) the date by which deliveries are expected,
(v) the date on which the quotation will be opened (wherever necessary),
(vi) warranty requirements,
(vii) requirement of test certificate, if any,
(viii) requirement of type approval for compliance of statutory requirements
with respect to pollution ,emission, noise, etc.
(ix) training, technical support, after sales service and annual maintenance
contract requirements, if any.
(x) period of validity of quotation,
(xi) special requirements of packing and marking, if any,
(xii) normal payment terms of the institute,
(xiii) tax exemptions applicable and
(ivx) any other special terms and condition which are applicable. An Approved
format available for this shall be used.

6.11 Quotation must be opened in the presence of all purchase committee

members/purchaser as the case may be. All quotations must be signed by all
members of the committee / purchaser (along with date). Signatures are
necessary on the covering envelope, financial part of the bid and the part
which contains the terms and conditions. Negotiations should be done only
with L-1 bidder.

There shall be a standing committee comprising of In-charge-SPO, Audit

Officer and one more official for opening general quotations of all the

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purchases which is scheduled every week normally. ie every Thursday at 3 pm
in the office of the central Store.

6.12 In all purchases with multiple quotations, the report of the

purchaser/purchase committee should include the following:-

a) A comparative statement of all dealers/sellers indicating all taxes,

freight, forwarding etc (i.e. the total cost of the purchase).
b) The dealers from whom purchases is recommended.
c) In the event purchase is recommended not on the basis of lowest
quotation, the reason thereof shall be explicitly stated.
d) Any other relevant information (an approved format is available for
this). The report complete in all respects along with associated
documents shall be sent to R&D (for project purchases) SPS (for non
project purchases).

6.13 All the purchases exceeding Rs. 50,000/- (Rupees Fifty Thousand only)
must be pre-audited through Internal Audit. This will be applicable for direct
purchases as well as purchase through SPS

7.0 Payment Terms:

7.1 Except for purchases under serial no 6.1.1, the payment terms shall be
as approved by the CFA in the sanction sheet, however normal payment terms
for indigenous purchases shall be 90% on delivery of the items and the
remaining 10% after satisfactory installation/inspection. Terms of payments
may be changed from item to item, for example, liveries, stationery and
furniture etc. For such items the payment may be made 100% against delivery
subject to the inspection and approval by the competent authority. For small
purchases upto 50,000/- of any items 100% payment against delivery and
inspection may be done.

7.2 Payment terms against dispatch documents through bank is not allowed
as far as possible keeping in view the risk involved. However, this may be
allowed for Government Firms.

7.3 Any advance payment to the seller (ie private firm) shall normally be
made only against a bank guarantee of the requisite amount. Any deviation
from this or advance payment against any other mode of guarantee shall be
specifically approved by DD/DORD (for project purchase).

7.4 If the payment term is against delivery/COD(cash on delivery)/ then

after receiving the goods indenter shall inform store purchase section to
release the payment after being satisfied.

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7.5 For balance payment, after receipt of satisfactory IR the items must be
entered in appropriate stock and asset register. The SPS will submit the
necessary document within one week to R&D office for project purchases and
to AS for all other purchases for release of payment by R&D and AS, as the
case may be. The R & D / AS will ensure that the payment due are released
within 7 days through cheque/draft directly to the seller by registered
post/courier.

On specific request from the purchaser the cheque/draft can be given to the
purchaser for onward transmission to the seller. In such a case the purchaser
shall be responsible for submission of the receipt from the seller to R&D/AS.
When cheques are sent to sellers directly by Account Section for the balance
and final payment a copy of covering letter must be sent to Store Purchase
Section for information and closing the file.

8.0 Liquidated Damages (Late Delivery)

There should be a suitable provision in the terms & conditions of the contract
for claiming liquidated damages of appropriate amount from the supplier to
take care of delays in supplies and performance, for which the supplier is
responsible. Such recovery through liquidated damages should be without
prejudice to the other remedies to the purchaser under the terms of the
contract.

A penalty clause for a penalty of 1% of the delivered price of the delayed goods
for each week or part thereof subject to a maximum of 10% of the delivered
price is to be incorporated in the contract terms. If the payment term is 100%
against delivery and if there is delay in supplying the material then a cheque of
penalty amount must be taken from the seller in favour of the Director, IIT
Kanpur.

9.0 Purchase sanction and receipt of items:

The sanction sheet for all purchases except those in serial no 6.1.1 must be
approved by the CFA. These sanction sheets shall be prepared by the R&D
office for project related purchases and by SPS for non-project related
purchases. The sanction sheet thus prepared along with all associated
documents shall be sent for pre-audit to IA prior to approval by the CFA.
Based on the approved sanction sheet the purchase order shall be prepared by
R&D (for project purchases) and sent to SPS. For all other purchases the order
shall be prepared by SPS.

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 9.1 If for any reason a financial change in the purchase order is required,
the request for such a change shall be thoroughly examined by IA and shall be
approved by the CFA before the change is issued in the form of an amendment
to the original purchase order by the SPO.

9.2 All purchases, except those listed above serial no 6.1.1, shall be made
through a purchase order placed on the seller by the SPO of the institute, who
shall be responsible for receipt of goods and the subsequent dispatch of the
receipted goods to the purchaser along with copies of IR. The purchaser shall
return the IRs within 15 days after recording appropriate comments.

Wherever the purchase has been processed through a purchase committee, the
purchaser shall ensure that the committee has carried out the inspection of
the items prior to submission of the IRs to SPS.

9.3 Inspection Reports (I.R.) must be returned to Store Purchase Section

duly approved or rejected within fifteen days, otherwise it will be presumed
that materials supplied are acceptable to the purchaser and necessary action
will be taken for making the payment to the firm.

9.4 The SPS shall be responsible for clearance of all consignments at railway
stations, sea, airport, and transport godowns and safe transportation and
storage. Insurance of items shall be done before dispatch either by seller or
SPS.

9.5 Normally delivery of items purchased shall be done at the SPS. However,
in exceptional situations the suppliers may also deliver the items directly to
the purchaser in which case the purchaser shall be responsible to inform the
SPO about such delivery, within seven days of receipt of the items.

9.6 In the event of any shortage/damage/wrong supply, prompt action will

be initiated by SPS to rectify the same. In case the supplier fails to rectify the
shortage/damage/wrong supply in a reasonable time, the matter shall be
referred to the legal cell to recover the full cost paid. SPO shall lodge Insurance
claims, and pursue them vigorously to realize the sum insured.

9.7 Once the purchase has materialized satisfactorily, the items must be
entered in the appropriate stock register of the department/project and in the
Asset Register of the Institute, where ever relevant.

9.8 The payment order, signing of bills, signing of cheques for the processing
of payments and adjustment shall be in accordance with the delegation of
powers as enumerated in clause 4.0.

9.9 Any increase in the price of item(s) ordered which is directly and entirely
attributable to fresh imposition or increase in Government levies and

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taxes may be allowed subject to furnishing of sufficient valid written proof by
the supplier.

9.10 The Director may at his discretion permit deviations from any of the
above provision if he is satisfied that such deviations will be in the interest of
the institute and that the insistence on the above provisions can cause
inconvenience and delay.

9.11 All purchases/Rate Contract Arrangements will be audited by the

Internal Audit Section (IA) of the institute except in the following
circumstances;

a) Individual purchases done as per an existing Rate Contract

arrangement,
b) a repeat order if there is no change in price.

9.12 The rates should preferably be quoted both in words and figures. All
cuttings, overwriting should be duly initialled, failing which the
quotation/tender/bid shall be liable to be rejected.

10.0 Duties & Taxes:

Presently the applicable concessional custom duty for educational Institute is

5.15% which is payable for imported items. In case the order is on Ex-works or
FOB basis, the Institute may be required to pay freight / insurance charges as
per prevailing rate

As per the prevailing taxation policy of the Government, VAT/CST shall be

payable for all indigenous items. The service tax shall be applicable for service
and for Annual Maintenance Contract (AMC). The present rate of service tax is
12.36%.

The institute is partially exempted from paying custom/excise duty for all
import and indigenous items, for which an excise/custom duty exemption
certificate shall have to be provided by the institute.

Whenever any item is purchased through high sea sale agreement, the
concessional custom duty certificate will be issued to the supplier and the
amount of custom duty paid by the supplier will be reimbursed by the
Institute. However sale tax shall not be paid by the institute in such
purchases.

Any concession on taxes and levies such as excise duty, custom duty and sales
tax granted by the state/central Government in procurement of any item must
be availed. The SPO shall obtain all such information and apprise

16
all concerned about the applicability of tax/levy rates and charges brought
about, if any, from time to time. The SPO shall issue the required
declaration/certificate to this effect for all purchases on demand and account
for all such issues and furnish the required report to the Government
Agencies, as and when required.

11.0 Annual Maintenance Contract:

Depending on cost and nature of the goods to be purchased, it may also be

necessary to enter into maintenance contracts for a suitable period either with
the supplier of the goods or with any other competent firm, not necessarily the
supplier of the subject goods. Such maintenance contracts are specially
needed for sophisticated and costly equipment and machinery. It may however
be kept in mind that the equipment or machinery is maintained free of charge
by the supplier during its warranty period or such other extended periods as
the terms of contract may provide for. The paid maintenance should
commence only there afterwards.

The annual maintenance contract, repair contract, repair work from the
manufacturer / manufacturer’s authorized supplier, in respect of various
equipment in the department, may be entered into by the HOD for maximum
of 10% of the equipment cost or Rs 1,00,000/- whichever is less. In all other
cases, quotations will be invited and normal purchase rules shall be adhered
to.

In case of renewal of the Annual Maintenance Contract, the following points

may be taken care of while sending the proposal for renewal of Annual
Maintenance Contract;

 AMC should be from a prospective date. In order to ensure this, the

HODs shall be required to initiate action for renewal of AMC at least
 90 days before the expiry of previous AMC. 
 In case of renewal, the service report /log book (of xerox copier)
 should be sent along with the proposal. 
 In case of any increase in the AMC cost when compared to previous
AMC, necessary justification for increase in price may be obtained
 from the firm and enclosed along with the indent. 
 Advance should be paid against bank guarantee, if the amount is
more than Rs.1,00 ,000/- 

17
12.0 Purchasing of Import Items:

Generally the procedure outlined in the previous section shall be followed for
procurement of items through import. However, the following is especially
applicable to imports made by SPS.

12.1 Any category of stores can be purchased from foreign suppliers subject to
restrictions on imports as imposed by the Government of India from time to
time.

12.2 Provision of exemption in customs duty must be availed.

12.3 Import should normally be made directly from the foreign principal
manufacturers. In the event a purchase is made through an Indian agent of
the foreign company, proof that the Indian agent is an authorized agent of the
foreign company must be obtained and must be part of the documents
pertaining to the purchase. Any commission of the agency which may be
payable to the Indian agent can be paid only in Indian Rupees (unless there is
a change in Government of India rules which may necessitate payment in
foreign currency).

12.4 If a foreign company has opened an office in India then it can authorize
any Indian agent to deal with IIT Kanpur

12.5 All imports shall be done through the import unit of the SPS. The in-
charge import unit shall ensure that the item being imported does not fall
under the restricted /negative/banned category.

12.6 Request for quotation for items to be procured through import may be
sent through email, in addition to registered post /speed post/courier/fax.

12.7 Quotations may be accepted by e-mail for amount less than US$ 2000 or
equivalent but it should be duly verified by the indenter.

12.8 Payment for import shall normally be made through a letter of credit.
However, payment can also be made by a draft, subject to the restrictions
placed by the Reserve Bank of India.

12.9 Advance payment by a foreign currency draft/TT can be made up to a

value of US$ 10,000/- (or equivalent in foreign currency). For such payments,
the advance payment will be treated as an advance against the purchase until
it is adjusted.

18
12.10 Term of shipment should be on FOB price of that country and not CIF,
as Institute has hired the services of a Freight Forwarder. However CIF price
may be accepted as a special case on case to case basis depending on the
situation.

12.11 The in-charge, import unit will be responsible for placing orders,
opening/amending extending letters of credit, insurance, clearance and
transportation of goods, processing for short shipped/damaged goods.

12.12 Wherever required, the Institute shall avail the services of clearing/
consolidation agents for foreign consignments arriving by air/sea. Such
clearing agents shall be hired on the basis agreed terms or single consignment
basis; whichever may be advantageous to the institute.

12.13 The In-charge, Import Unit shall maintain a stock register in which all
imported items received shall be entered. Delivery of foreign consignment to
the purchaser will be made against the signature in this register. All imported
items shall be appropriately entered in the departmental stock register and
asset register (if applicable).

12.14 Inspection Reports (I.R.) must be returned to Store Purchase Section

duly approved, or rejected, within three days, failing which it will not be
possible to lodge the claim of damage to the Insurance Company and it will be
presumed that materials supplied are acceptable to the indenter.

13.0 Import of items through individual International Credit

Card:
13.1 Limit of payment of individual credit card is upto US$ 2000, or
equivalent as per directives of the RBI. The purchaser must take the approval
from the CFA in advance.

13.2 Indenter must ensure through import section if the item is not banned/
canalized.

13.3 Indenter should also declare that the item is not for sale, or profit,
making it clear that it is exclusively for research purpose.

13.4 Indentor should ensure that the item is of proprietary nature and only
this Firm is manufacturing and simultaneously he should also declare that the
requirement will be fulfilled by this item only.
13.5 If the item is not of proprietary nature then the indenter should declare
the price quoted by the Firm on the e-mail is quite reasonable in comparison
with national/international market and that he has assured himself by seeing
the prices of different Firms on the internet.

19
13.6 Indenter should get approval of CFA before placing the order by credit
card and inform import section for recording the amount for onward
submission to Ministry Of Science & Technology, Department of Scientific &
Industrial Research, Delhi, for the registration of exemption of customs duty.
For this, one copy of order is to be sent to import section.

13.7 Shipping mode and port of shipment must be clear in the order as to
whether the shipment will be Ex-works/FOB/C&F/CIF/FAS/CIF etc.

13.8 Shipping details should be intimated by the indenter to the Import

Section before it is dispatched and shipping should be through Institute
authorized Freight Forwarder.

13.9 Each and every event development be intimated to the import section to
avoid delay in release leading to demurrages for the material.

14.0 Maintenance of Record

This section describes the records pertaining to stores that must be

maintained by the Institute, departments, sections, units so as to facilitate
proper stock verification, write-off and revaluation of stores, besides the
transfer of stores from one department to another.

14.1 The Institute shall maintain a record of all purchases in the NCS
category in the Asset Register of the Institute. Each entry must contain at least
the following information: (a) purchase order number and date, (b) brief
specification of the item, (c) date of entry in the Asset Register, (d) name of the
department, and (e) cost and project number (if applicable). The total value of
all the assets entered in the Asset Register during the financial year shall
indicate the value of the assets to be capitalized in the balance sheet of the
corresponding financial year.

14.2 The Institute shall maintain a record of all purchases in the LTAS
category in the Limited Time Asset Store Register of the Institute. Each entry
must contain at least the following information; (a) purchase order number
and date, (b) brief specification of the item, (c) date of entry in the Asset
Register, (d) name of the department, and (e) cost and project number (if
applicable). The total value of all the assets entered in the LTAS register during
the financial year shall indicate the value of the limited time assets to be
capitalized in the balance sheet of the corresponding financial year.

14.3 Each Department shall maintain the following three separate registers.
NCS Stock Register, LTAS Stock Register and Consumables Stock Register.
Items in the different categories purchased by the Department shall be entered
in the appropriate register.

20
14.4 Each project shall maintain a project consumables register. All CS items
purchased from the project shall be entered in this register. All NCS and LTAS
items must be entered in the NCS Stock register or the LTAS Stock register of
the associated department. Project investigators, if they wish, may maintain
separate NCS and LTAS stock register for their project, but it is necessary to
enter NCS and LTAS items as the case may be in the stock register of the
associated department. Each register must have consecutively numbered
pages after the certificate page and the index, which shall be at the beginning
of the register.

14.5 The register should have following certificate on the first page ;

“Certified that this register contains a total of ------------- pages and each
page has been consecutively numbered on both sides from ----to-- --”.

Date : Signature of HOD

14.6 The SPO shall be the custodian of all Stores, purchase records
pertaining to NCS and LTAS items of the institute (including those for
projects). All original documents related to any such purchase (including for
inquiries, report of purchase committee, sanction sheet, purchase order,
invoice/bill, delivery challan, and inspection reports etc) shall remain with SPS
after purchase is complete. These records /documents will be maintained for
such periods as may be stipulated by Government Financial Rules of the
Central Government. After the stipulated period, the record / documents may
be destroyed with the specific approval of the Director.

14.7 All HODs/PIs shall appoint a committee to conduct an annual stock

verification of all items on the previous stock register of the department/
project at the end of financial year. The committee shall submit a report in the
approved format to the HOD/Pl for onward transmission to SPO/DORD (for
project). The SPO/DORD shall be responsible for issuing a notice for annual
stock verification every year.

14.8 Once a year the HODs/PI shall constitute a Stores Survey and Physical
Stock Verification committee of not less than three members. This committee
shall survey all the NCS and LTAS stores and recommend write-off for NCS
items which are not useable and not serviceable and revaluation for LTAS
items which have become obsolete. For NCS the committee shall record the
reason for recommending write-off. For LTAS the committee shall revalue the
LTAS and report all those items which may be considered to be as of no value
with reasons recorded. HODs/PI shall forward the report to the Director for
approval. This report subsequently shall be sent to SPS for necessary action.

21
15.0 Transfer of Stores

15.1 Transfer of stores within the institute from one department to another
can be done by using the approved format available in the Stores & Purchase
Section. For transfer of items whose individual value is greater than
1,00,000/-, the explicit written approval of the Director will be required. The
transfer must be duly recorded in the relevant register of both the
departments. For transfer of item of any value Director’s permission is
required.

15.2 Transfer of stores from the institute to another institute/college/

university/ industry can be done only with the explicit written approval of the
Director. For the stores whose book value is greater than Rs.1,00,000/-, the
approval of the Finance Committee will be necessary. In case of project
purchase, the transfer of stores on specific instructions of the sponsoring
agency can be done with the explicit approval of the Director.

15.3 Subsequent to transfer of stores as mentioned above, the appropriate

Stock and Asset Registers shall be suitably updated. The value of stores so
transferred shall be deducted from the capitalized assets of the institute as
indicated in the balance sheet.

16.0 Records of Consumable, non consumable and LTAS items received

through Gifts, donations and samples received by the Institute.

The Institute has been receiving various types of gifts, donations and
non-returnable samples/components under various schemes as
complimentary, under sales promotion or in kind etc from various universities,
laboratories, manufacturers, suppliers and even persons. A consolidated
record in this regard is maintained by the Stores & Purchase Section. The
concerned departments/user sections are, therefore, required to maintain the
inventory/details of such items/gifts/samples in their own records and a
confirmation to this effect is to be sent to the Store & Purchase Section not
more than with one month of receipt of such items/gifts/samples.

17.0 Write off, Condemnation and Disposal

17.1 An item may be declared surplus or obsolete or unserviceable, if the

same is of no use to the Institute or when the item is beyond economical
repair. An item may be rendered surplus, obsolete or unserviceable in the
process of upgrading or replacing institute property or when institute property
or equipment no longer serves a functional use due to programme, procedure
or other changes. Under such circumstances the property and

22
equipment be disposed of in the best interest of the Institute as per the
following guidelines with prior approval of the Director.

a) Wherever possible, the stores/equipment is traded under buy back

scheme, so as to reduce the cost impact on the new stores/ equipment.

b) If the above option is not available, the property and equipment be

sold out rightly with due procedures.

(c) Obsolete, unusable materials beyond economic repair be disposed off

as per procedure.

This manual outlines the procedure for write off and disposal of unserviceable
materials purchased by Department /Inter-disciplinary programme /Centers
/Central facilities/Sections and purchases in projects etc.

17.2 Financial Powers

The following table gives the financial limits for writing off of the unserviceable
items/materials with an individual value;

Sl. Competent Authority Write off material items

No for disposal with an value
of Rs.

1 u Director u Below Rs. 2,00,000/-

2 u Board of Governors u Above Rs. 2,00,000/-

17.3 General Procedure for writing off the unserviceable Materials/Items.

17.3.1 The items to be declared the obsolete /surplus/ unserviceable should

be examined by a committee at appropriate level to be appointed by the
Director/Dy. Director to declare an item of stores as obsolete, surplus or
unserviceable and order their disposal. The committee should take into
account the prescribed or stipulated life period of the stores. In case, such
period is not prescribed /stipulated or it is not over, the committee should
examine the conditions of stores and record suitable reasons. If an item has
become obsolete/surplus/ unserviceable on account of negligence, fraud or
mischief on the part of employee, the same should be brought out clearly.

23
17.3.2 Where the “life period” has been prescribed on any item and the same
is already over, it should normally be taken as enough ground for declaring the
item obsolete and unserviceable. However, the condition of the item should
still be thoroughly examined to see whether the item could be put to further
use.

17.3.3 In other cases, where the life period is not over or no life period has
been prescribed or stipulated, the reason for declaring the item unserviceable
should be clearly recorded such as, may be normal wear and tear, excessive
use in public interest, accidental fire, flood and other natural causes, damage
due to insect, rats etc.

17.3.4 An item may be declared obsolete / surplus if it is no longer required

by the Departments. Reasons for the same should be recorded.

16.3.5 In case of loss due to negligence fraud or mischief on the part of any
employee responsibility should be fixed and losses made good.

17.3.6 Authority competent to purchase a store shall be competent to declare

the store as obsolete / surplus /unserviceable.

17.3.7 The condemnation Committee shall submit its recommendations in the

prescribed form (i.e. FORM GFR -17) obtainable from the Store Purchase
Section (or from the web page of the Central Stores - simply log on to IITK
home page then click Amenities and Service and then go to service and then
click Central Stores) after ensuring that items have become unserviceable,
obsolete due to wear and tear and is beyond economic repairs. Separate
GFR-17 form should be filled for Account –I , Account-II items/equipments as
well as for the value below Rs. 2,00,000/- and above Rs. 2,00,000/-
u u u u u u u

respectively.

17.3.8 After approval of the Director on the recommendations of

condemnation Committee, Head of the Department / Section shall forward a
copy of the Director’s approval to the convener of the Auction Committee with
copy to Store Purchase Section.

17.3.9 Actual physical disposal of items which have been written-off will be
done only after the Director has approved the recommendations of the write-off
/condemantion committee.

17.3.10 Label the items/ materials for write off.

17.4 The write- off/condemnation Committee shall consist of :

i) Head of the Department /Centre/ Section -Chairman

24
 ii) One Dy. Registrar, or equivalent -Member

iii) In-charge (S & P), or his nominee -Member

vi) In-charge (Internal Audit), or his nominee -Member

v) Technical expert (Group ‘A’ rank) or his equivalent -Member

17.5 General procedure for materials that have been selected for disposal
or obsolete, surplus or unserviceable stores.

Auction Committee shall consist of

1. Deputy Director or his nominee -Chairman

2. In-charge (S& P) -Member Secretary

3. Dy. Registrar (F&A), or his nominee -Member

4. In-charge (Internal Audit), or his nominee -Member

5. Security Officer or his nominee -Member

6. Officer-in-Charge (R&D) or his nominee -Member

17.6 Procedure for Auction

17.6.1 After approval of the Director on the recommendations of

Condemnation Committee, Head of the Department / Section shall forward a
copy of the Director’s approval to the Member Secretary, Auction Committee.

17.6.2 The concerned department / section / center, shall make

arrangement to remove the condemned articles/materials from the
Department/Section concerned to the place earmarked for their temporary
storage, within a week from the date of receipt of the copy of the condemnation
report. Items to be disposed of shall be under the custody of the Member
Secretary, Auction Committee until their disposal.

17.6.3 The unserviceable materials shall be disposed of at least once in a

month through open/sealed tendering.

17.6.4 The Auction Committee shall decide the mode of auction. As far as
possible, the disposal would be through Institute tender notice/press tender
notice where interested parties would be issued tender forms to quote the rate
under sealed cover.

17.6.5 The tenders in a sealed cover superscripted “Tenders for unserviceable

materials”, should be submitted in the second week or last week of the month

25
up to 3.00 PM (in case of holiday, the next working day) and will be opened at
3.30 PM on same day in the presence of Committee members and tenderer
who may wish to be present.

17.6.6 The tenders shall be accompanied with earnest money deposit for
items/stores, by way of demand draft drawn in favour of the Registrar, IIT
Kanpur.

17.6.7 Tenders received without Earnest Money Deposit would be straight

away get rejected, or shall not be entertained.

17.6.8 The tender forms along with the terms and conditions may be
obtained from the office of the Central Store on payment of Rs. 500/- (Rupees
Five Hundred only)

17.6.9 The party whose tender is accepted will be required to deposit the
balance amount (after adjustment of earnest money deposit) within a period of
five days of the receipt of the order/notification. If the amount is not deposited
within the aforesaid period, the acceptance of offer shall stand cancelled and
the earnest money shall be forfeited.

17.6.10 After depositing the balance amount the party should lift the goods
within a period of seven days. If the goods are not removed within the said
period, the tenderer shall have no right or claim to the goods and whatever
money have been deposited shall be deemed to have been forfeited. The
institute shall be free to dispose of the goods in any manner as it may deem fit.

17.6.11 A sale account of auction shall be prepared (in triplicate) in the

prescribed form (GFR-18) and shall be submitted to the Dy Director duly
signed by the Chairman/ Members Secretary of Auction Committee.

17.6.12 The institute shall reserve the right to reject all or any tender without
assigning any reason. The decision of the Director in this behalf and all other
matters relating to the disposal shall be final and binding.

17.6.13 On receipt of the sale account the department/section/store

purchase section will write off the auctioned items from the inventory/Asset
Register.

17.6.14 For item not covered by the above procedure, special permission of
the Director shall be obtained.

17.6.15 The Members Secretary Auction Committee shall arrange for the
handing over of unserviceable materials to the successful tenderer after the
deposit of the auction money in the cash branch of the institute.

26
17.6.16 It has been observed that very negligible value is quoted for items like
Computers, Printers, Typewriters and Furniture etc. It will be, therefore,
appropriate, if the preference is given to institute employees while selling off
the above items after taking approval from the Director/Deputy Director.

17.6.17 In case of any dispute, the jurisdiction of the matter should

invariably remain with the courts situated at Kanpur City (U.P.)

17.6.18 The tender should be complete in all respects and should be duly
signed. Late and delayed tenders due to any reason including postal delays
should not be considered. Incomplete and unsigned tenders should not be
considered at all. Offers sent through fax/email/telegram will not be accepted.

17.6.19 Cases not covered by the Stores & Purchase manual will be decided

by the Director in the interest of Institute.

27
 INDIAN INSTITUTE OF TECHNOLOGY, KANPUR Annexure-I

Purchase Proposal Request Form

Page____of______

File No._________

To

Officer In-charge

Store & Purchase Division

IIT Kanpur

Dept. Indent No.:____________ Indent Date___________

Department : _____________ Quotation Attached (Y/N)

Indenter PF No.:_____________

Types of Material: Purchase Order Type

Consumable Normal
Non-Consumable Repeat Order
Limited Time Asset Rate Contract

Please tick where ever-applicable Item Category______

(Please see the next page for Detailed info.of category)

Item Details of Required Items

Sl.No. Complete Description Stock Held on Quantity Purpose Approx Approx Total
of Items (Specification date Required Units Cost
Model, Catalog No.) (Whereever Price
Use separate Sheet if applicable)
required

Total Cost

Budget Details

Sl.No. Department Name/Project No. Budget Head Budget Amt.

Suggested Supplier

Sl.No. Name Address

1) Whether items are available in Central Stores : Y / N

2) Certified that Allocation exist for the above Amount

Indenter’s Signature HOD Signature DORD/Dy-Director/Director

Name:_____________ (Signature) (Signature)

PF No.__________

Email ___________

28
 INDIAN INSTITUTE OF TECHNOLOGY, KANPUR
RESEARCH & DEVELOPMENT OFFICE
Purchase Proposal Request Form
Annexure-II
Requester’s Name: ______________________________________ P.F. No.: _______________
Project No.: ___________________________________________________________________
Purchase order type: Normal/ Rate Contract/ Repeat Order No. __________________________
Recommended Quotation No.: ______________________________ Dated: ________________
Delivery Period: ________________________________ Despatch Mode: _________________

S.No. Complete Description/Specification of items required Qty. Unit price Total Amount (Rs.)

(Consumable/Non-Consumable /LTAS ………..…………….)

Total Cost Rs.

Other Charges Budget

Amount Project No Project Head Amount

1. Excise Duty _________ %
2. Sales Tax/Trade tax _________%
3. Freight
4. Packing & Forwarding
5. Transit Insurance
6. Specific Condition (if any )

Signature
Payment Terms Project Investigator’s Signature Vendor’s Address
of HOD Approved

1. 90% against delivery

2. 80% against delivery M/s. ______________________________________
3. 90% against delivery through SBI, IIT Kanpur ______________________________________
4. 100% against installation Name:
5. ______% advance against Bank Guarantee ______________________________________
6. Any other specify – detailed overleaf
______________________________________
Tel. No.: DORD/DD/Director

29
** PLEASE MAKE ALL ENTRIES IN CAPITAL LETTERS.**
(IN TRIPLICATE)

REQUISITION FORM FOR IMPORTED ITEMS THROUGH IMPORT SECTION.

Annexure-III

DEPARTMENT _______________________ REQUISITION NO.

_______________Date______
INDENTOR’S NAME ___________________ PF NO. __________TEL. NO._______________

SOURCE OF FUND : in case of account one (I) NAME OF DEPT._____________________budget.des.____

SOURCE OF FUND : in case of account two (II) PROJECT NO. ______________________budget.des____
MODE OF SHIPMENT ____________Consumable _________ Non Consumable________LTA___
PARTICULARS OF GOODS REQUESTED FOR IMPORT :
S PARTICULARS/DESCRIPTION OF THE ITEMS Q COUNTRY VALUE IN VALUE IN
. AS GIVEN IN QUOTATION/INVOICE OF THE U OF IMPORT FOREIGN INDIAN
N SUPPLIER (USE CAPITAL LETTERS) A CURRENCY RS.
O N
. Quotation No. __________________________ TI
Date __________________________________ T
Y
1

4
5

TOTAL FOB VALUE =

TOTAL CIF/C&F VALUE =
DISCOUNT IF ANY =
AGENCY COMMISSION =
FREIGHT =
INSURANCE =
Other details /charges if any = _______________

SUPPLIER’S ADDRESS LOCAL AGENT’S FULL ADDRESS

(FULL ADDRESS IN CAPITAL LETTERS)
____________________________________
_______________________________
____________________________________
____________________________________
INDENTOR/HOD/PROJECT INT.
( IN CAPITAL LETTERS)
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
APPROVED BY

_____________________________
DORD/DY. DIRECTOR/ DIRECTOR
Enclosures :- (Signatures with date of approval )
1. proforma invoice (three copies) valid for 60 days.
2. list of goods (6 copies )
3. end use certificate, NMLC, Proprietary certificate
4. check list duly

30
 ANNEXURE-IV

INDIAN INSTITUTE OF TECHNOLOGY KANPUR

STORE & PURCHASE SECTION
Supplier Registration Form
Firm’s Name : ________________________________________
Owner’s Name : ________________________________________
Full Postal Address : 1. ______________________________________
____________________________PIN_______
2.______________________________________
____________________________PIN_______
E-mail address : ________________________________________
Website address : ________________________________________
Contact Person’s Name : ________________________________________
Contact No. : Phone No: Mobile No
Fax No. City: State:

Sale Tax Registration No. : UPTT No.____________ CST No. _________

(Enclosed Xerox copy) TIN ____________
PAN : _____________
(Enclosed Xerox copy)
Shop Act Registration No. : _____________
(Enclosed Xerox Copy)
Excise Registration No. : _____________
(Enclosed Xerox copy)
Current Bank Account No. : _____________ (Statement of last twelve months should be
enclosed)
Manufacturer or Supplier : ____________________________________
(In case of supplier please enclose authorization of your Principal)
List of the organizations to whom the materials have been supplied
Item(s) name you want to supply: (Major category)
Computer  Furniture  Chemical  Glassware  Electronic  Liveries  Medicines 
Scientific Equip.  Stationery  etc. _________________________________________

Signature with Seal

Note: Supplier must print CST/UPTT/TIN No. on their Letter Head/Bill/Quotations

31
 ANNEXURE-V
INDIAN INSTITUTE OF TECHNOLOGY KANPUR
STORE & PURCHASE SECTION

Renewal Registration Form

Firm’s Name : ________________________________________
Owner’s Name : ________________________________________
Full Postal Address : 1. ______________________________________
____________________________PIN_______
E-mail address : ________________________________________ Website
address : ________________________________________
Contact Person’s Name : ________________________________________
Contact No. : Phone No: Mobile No
Fax No. City: State:

TIN No. : ____________

PAN : _____________
(Enclosed Xerox copy)
Shop Act Registration No. : _____________
(Enclosed Xerox Copy)
Current Bank Account No. : _____________
Manufacturer or Supplier : ____________________________________
(In case of supplier please enclose authorization of your Principal)
List of the organizations to which the materials have been
supplied Item(s) name you want to supply: (Major category)
Computer  Furniture  Chemical  Glassware  Electronic  Liveries  Medicines 
Scientific Equip.  Stationery  etc. _________________________________________

Signature with Seal

Note: Supplier must print CST/UPTT/TIN No. on their Letter Head/Bill/Quotations

32
 ANNEXURE-VI

PROPRIETARY CERTIFICATE FORM

I hereby certify to the best of my knowledge and belief that the stories indented

for are of proprietary dealers being M/s -----------------------------------------------------

---------------------------------------------------------------------------------------------------------

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And the requirement of the department will not be met by any substitute stores

due to the following reasons:

1. -----------------------------------------------------------------------------------------------

2. ----------------------------------------------------------------------------------------------

This is against purchase indent No. ----------------- Dated --------------------

Indenter Signature

Head of the Department Signatures

With Office seal with office seal

Date :

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 CONTENTS

Sl.No. Particulars Page No

1.0 Introduction 1
2.0 Abbreviation and Definitions 1
3.0 Classification of Stores 2
3.1 Non Consumable Stores (NCS) 2
3.2 Limited Time Asset Stores (LTAS) 3
3.3 Consumable Stores (CS) 3
4.0 Financial & Sanctioning Power 4
5.0 Category of Firms 5
5.1 Local registered Firms 5
5.2 Outside Firms 6
5.3 Black Listing 6
6.0 General Procedures & Rules for Purchases 6
6.1.1 Purchase of Goods without Quotation upto
Rs 50,000/- 6
6.1.2 Purchase of Goods by Purchase Committee
by Purchase Committee above Rs 50,000/- 7
6.2 Purchase of goods with Quotation 8
6.2.1 Purchase upto a value Rs.1,50,000/- 8
6.2.2 Purchase above Rs. 1,500,000/- 8
6.2.3 Bulk purchase by Stores 8
6.3 Purchase of Proprietary Article/Item 9
6.4 Repeat Order 9
6.5 Purchase under Rate Contract Goods 10
6.6 E-procurement 10
6.7 Purchase Under buy back scheme 11
6.8 Two Bid system 11
6.9 Late Tender 11
6.10 Purchase procedure for not covered under 6.1.1 12
6.11 Quotation Opening 12
6.12 Purchase Committee Report 13
6.13 Pre-audit through IA for purchase exceed 13
Rs 50,000/-
7.0 Payment Terms 13
7.1 Approval of CFA 13
7.2 Payment against dispatch of document through bank 13
7.3 Payment against bank guarantee 13
7.4 Payment terms against delivery 13
7.5 Balance Payment 14
8.0 Liquidated Damages (Late Delivery) 14
9.0 Purchase Sanction 14
9.1 Change in PO needs approval of CFA & IA 15
9.2 All purchases except under 6.1.1 15
9.3 Inspection Report 15
9.4 Clearing of Consignment 15
9.5 Direct Supply to purchaser 15
9.6 Steps for shortage/damage wrong supply 15
9.7 Entry in the stock/asset registers 15
9.8 Delegation of power 15
9.9 Increase of Govt Taxes/levies needs proof 15

34
9.10 Director’s discretions 16
9.11 Internal Audit exception 16
9.12 Quotes should be in words & figures 16
10.0 Duties & Taxes 16
11.0 Annual Maintenance Contract 17
12.0 Purchasing of Import items 18
12.1 Restricted Items 18
12.2 Provision of exemption of CD 18
12.3 Import directly from foreign principle 18
12.4 Indian Agent 18
12.5 Import only through SPO 18
12.6 Request for quotations 18
12.7 Quotation by e-mail < 2000 US$ 18
12.8 Terms of payment 18
12.9 Advance Payment 18
12.10 Terms of shipment 19
12.11 Responsibility of Import unit 19
12.12 Clearing agent 19
12.13 Stock Register 19
13.0 Import purchasing through individual international
Credit Card 19
13.1 Limit of payment 19
13.2 Check the item is not banned/Restricted 19
13.3 Declaration of Item 19
13.4 Declaration regarding proprietary nature 19
13.5 Declaration of reasonableness of price 19
13.6 Approval of CFA 20
13.7 Mode of Shipment 20
13.8 Intimation of Shipment details 20
13.9 Intimation of every event 20
14.0 Maintenance of Record 20
14.1 Maintenance of Record NCS category 20
14.2 Maintenance of Record ALTS category 20
14.3 Maintenance of Stock registers 20
14.4 Maintenance of Project consumable Register 21
14.5 Certified Stock Register 21
14.6 Custodian of Records 21
14.7 Annual Stock Verification 21
14.8 Store Survey & Physical Verification committee 21
15.0 Transfer of Stores 22
15.1 Transfer of Stores within the Institute 22
15.2 Transfer of Stores to the another Institute 22
15.3 Entry in stock & Asset Register 22
16.0 Records of Gifts, donation in kinds and non 22
returnable sample with components

35
 17.0 Write off and Disposal 22
17.1 Introduction 22
17.2 Financial Power 23
17.3 General Procedure for write off unserviceable
material /item 23
17.4 Write off committee 24
17.5 Auction Committee 25
17.6 Procedure for Auction 25

Annexure-I Purchase Proposal Request Form (Institute)

Annexure-II Purchase Proposal Request Form (R & D)
Annexure-III Purchase Proposal Request Form (Import)
Annexure-IV Supplier Registration Form
Annexure-V Supplier Renewal Form
Annexure-VI Proprietary Certificate Form

36
 INDIAN INSTITUTE OF TECHNOLOGY KANPUR

STORES & PURCHASE MANUAL

Approved by the Board of Governors in its 2008/5th

meeting held on 28.11. 2008.

Agenda item No. 2008.5.27

37